CPT Student Tax Essentials: What Every F-1 Student Needs to Know

Curricular Practical Training (CPT) is one of the best ways for international F-1 students to gain valuable, real-world experience while studying in the United States.

However, before you start earning income through your internship or cooperative placement, it’s important to understand how CPT affects your taxes — and what you can do to stay compliant while maximizing your potential refund.

This guide breaks down everything you need to know about CPT taxes for nonresidents in simple terms.

What Is Curricular Practical Training (CPT)?

CPT is a type of off-campus employment authorization granted to eligible F-1 students by their school’s Designated School Official (DSO).

It allows you to work in a position that’s directly related to your major or degree program — for example, a required internship or cooperative education experience.

CPT can be part-time or full-time, but it must be approved before you begin working. Your DSO will issue an updated Form I-20 that includes the CPT details.

Do I Have to Pay Taxes on My CPT Income?

Yes. All income you earn while on CPT is subject to U.S. federal and state income tax.

How much you owe depends on:

• Your total earnings

• Your tax residency status (most CPT students are nonresident aliens)

• The state where you work and live

To avoid IRS penalties or underpayment issues, make sure the correct amount of tax is withheld from your paychecks throughout the year.

What Is the Tax Rate for CPT Students?

As an F-1 student on CPT, your income is taxed under the same federal income tax brackets as U.S. residents. However, since you are a nonresident alien for tax purposes, you generally cannot claim the same deductions or credits.

Here are the 2024 federal tax brackets (for returns filed in April 2025):

Keep in mind that nonresidents are typically taxed only on U.S.-sourced income, not worldwide income.

Am I Exempt from Paying Tax While on CPT?

While you must pay federal and state income taxes, most F-1 students are exempt from Social Security and Medicare (FICA) taxes during their CPT employment.

This exemption applies because of your F-1 visa and nonresident tax status.

👉 Tip: Inform your employer about your FICA exemption so these taxes aren’t withheld from your paycheck by mistake.

If they are withheld incorrectly, you can request a refund later — but correcting it in advance is always easier.

Can F-1 Students on CPT Get a Tax Refund?

Yes — and many do!

If too much tax was withheld from your wages, you may be entitled to a federal and/or state refund.

Your eligibility depends on:

• The amount of income you earned

• How much tax was withheld

• Whether your country has a tax treaty with the U.S.

However, since nonresident aliens can’t claim certain tax credits (like the Education or Child Tax Credit), your refund might be smaller than that of U.S. citizens — but you should still claim every dollar you’re entitled to.

How to File Taxes as a CPT Student

If you earned income through CPT, you are required to file the following forms:

• Form 8843 – For all F-1 visa holders (even if you didn’t earn income)

• Form 1040-NR – U.S. Nonresident Alien Income Tax Return

Your employer will give you a Form W-2, which reports your annual wages and the taxes withheld.

You’ll use this form to prepare your federal and state returns.

Filing Made Simple with J1 Summer Tax Back

At J1 Summer Tax Back, we specialize in helping international and nonresident students file accurate and compliant U.S. tax returns.

Here’s how we make CPT tax filing effortless:

✅ Residency check: We determine if you’re a nonresident or resident for tax purposes.
✅ Automatic form selection: We prepare the correct forms (1040-NR, 8843, W-2, etc.).
✅ Maximized refunds: Our system ensures you claim every deduction and treaty benefit available.
✅ Peace of mind: 100% IRS-compliant filing and expert support every step of the way.

Get Started Today

Don’t risk IRS penalties or lose money due to errors in your CPT tax return.
Let J1 Summer Tax Back guide you through the process and help you claim your maximum refund.

👉 Start your CPT tax return now with J1 Summer Tax Back — fast, simple, and fully compliant.